Proven Strategies to Reduce Turnover and Retain Top Talent.

Streamlining the Onboarding Experience: Avoiding Common Pitfalls

The excitement of the first day at a new job is a feeling many of us know well. Stepping into a new office, meeting a new team, and embarking on new projects fill us with anticipation and hope. However, this enthusiasm can quickly be dampened by certain missteps in the onboarding process. Let's explore some frequently encountered issues that can alter the initial excitement:

1. Inadequate Work Environment Preparation: A common frustration for newcomers is an ill-prepared workspace. This includes everything from not having a designated workstation to dealing with malfunctioning technology. The confusion over where to sit, how to access necessary resources, and the operation of work tools can significantly impede an employee's ability to start off on the right foot.
2. Lack of a Proper Welcome: The importance of a first impression cannot be overstated, especially when meeting a new team and supervisor. Feeling isolated or unclear about who to turn to and what the company culture entails can lead to feelings of insecurity and frustration. A warm welcome and thorough introduction to the company and its team are vital for fostering a sense of belonging and ensuring a smooth integration of new employees.
3. Unclear Role Expectations: Misunderstandings and miscommunications are likely when the expectations for a new employee's role and responsibilities are not clearly defined. It's crucial for new hires to understand what is expected of them, the goals they should aim for, and how their performance will be assessed to ensure a successful start in their new position.
4. Lack of Support: When new team members feel unsupported and uncared for by management, their initial motivation can quickly wane. Feeling abandoned can be demotivating, highlighting the need for a supportive environment where new employees can navigate their new surroundings, ask questions, and feel at ease. An open and encouraging workplace is essential for the swift integration and success of new hires.

If these scenarios sound familiar, you likely understand the significance of a well-executed onboarding process. Proper integration of new team members is not only crucial for a company's long-term success but also directly affects employee retention, performance, and overall team satisfaction. And it's not just anecdotal evidence that underscores the importance of effective onboarding; research also confirms its significant impact on organizational outcomes.

The Science Behind Onboarding

Studies repeatedly emphasize the important role of effective onboarding in shaping employee engagement and retention. According to a report by C. Farren on the study of the Wynhurst Group, structured onboarding programs can increase the retention rate of employees by up to 58% over three years. Furthermore, the results from G. Tsipursky in the Harvard Business Report suggest that a positive onboarding experience can motivate employees to go above and beyond in their work, with 51% expressing their willingness to do so.

In contrast, a poor onboarding experience can have detrimental effects, making team members feel uncomfortable, confused, and disengaged. Reports show that disengaged employees can cost companies up to 18% of their salary. Research conducted by the Brandon Hall Group highlights the importance of a strong onboarding process, showing that organizations with robust onboarding procedures can improve the retention of new members by 82% and increase productivity by over 70%.

The connection and involvement employees feel towards their work significantly influence their decision to seek new job opportunities. Engaged employees, who find fulfillment in their roles and feel supported by their team, are more inclined to remain with their current employer. Conversely, those who feel disconnected, undervalued, or see no growth in their roles are more prone to explore new opportunities that promise greater satisfaction, purpose, and growth potential. Thus, creating a positive work environment, encouraging employee retention, and offering development opportunities are essential strategies for retaining top talent and minimizing turnover.

For those still on the fence, consider the insights from "Onboarding Begins Before the First Workday" (2020) by D. Brenner. This resource is particularly valuable for anyone involved in hiring, highlighting the importance of a proactive approach to onboarding and engagement:

1. Efficient Start: A structured and well-planned onboarding process significantly reduces the training time of new team members and enables them to contribute effectively in a shorter timeframe. By receiving clear expectations and resources from the beginning, they can adapt to their role more quickly and contribute to achieving company goals, thereby saving a significant amount of costs.
2. Enhanced Employee Retention: Welcoming new members warmly and making them feel valued from their initial days boosts their connection with the company, which in turn diminishes the likelihood of turnover. An effective onboarding strategy ensures they are quickly woven into the fabric of the team, fostering greater job satisfaction and loyalty over time.
3. Improved Performance: Team members who are well assimilated exhibit higher levels of motivation and engagement, contributing to the company's success more rapidly. This immediate ability to apply new skills and knowledge towards their roles not only aids in the realisation of company objectives but also has a lasting positive effect on the organisation's performance.

Digital Onboarding for Remote Companies

As a fully remote company, one might wonder how our onboarding process differs from the traditional approach. Indeed, there are several aspects that demand our attention. A study conducted by Packex, for example, found that 63% of surveyed remote workers still felt unprepared after their onboarding. This indicates that conventional onboarding techniques may not be entirely effective in equipping remote employees for their roles. Unlike in a traditional office setting, where employees can quickly obtain necessary information through direct interactions with colleagues, the remote work environment complicates this exchange, necessitating a more targeted and comprehensive onboarding strategy. Our approach aims to bridge this gap by ensuring that remote employees not only receive the necessary information to perform their work but also feel integrated into the company culture and develop a strong sense of connection with the team.

Supporting this perspective, a study by Glean in 2023, which surveyed over 2,000 knowledge workers in the United States focusing on their experiences of settling into new roles within hybrid or remote work models, found that a staggering 81% of respondents felt overwhelmed during the onboarding process. This sense of being overwhelmed often resulted in decreased productivity, inadequate knowledge acquisition, and, most critically, a feeling of dissatisfaction among employees who felt set up to fail.

These results align with a report by Gallup, stating that an alarming 85% of members are currently disengaged at work. This concerning statistic becomes even more alarming when considering that 63% of employees would consider leaving their job within two years if they feel they are not succeeding professionally. The resulting decline in productivity and the inevitable turnover cause significant costs for organizations. Moreover, the costs of replacing a team member, which according to Gallup can amount to up to nine months of their salary, represent a significant financial burden for organizations. These costs, coupled with the disruptive effects of a vacant position in the team, underline the urgent need to address and prioritize solutions to improve the onboarding experience.

According to the respondents, the most important signs of thriving employees are the ability to guide others to the right resources (43%), knowing where to find the required information (42%), and building strong relationships with colleagues (40%). Furthermore, the study highlighted that 77% of members believe that access to information without assistance significantly boosts productivity and empowers them in their roles. Similarly, 72% of team members agree that feeling empowered in their role is crucial to keeping them engaged and connected at work.

Considering these figures and understanding the consequences, it can be said that a lack of an onboarding process represents a financial burden for companies. This is especially true when considering the additional costs and disruptions associated with a vacant position in the team. In addition to the clear risk of a substantial decrease in productivity and efficiency when new employees lack the necessary resources, the absence of an effective onboarding process also poses the risk of failing to retain new members over the long term, as they may not feel adequately supported.

Our 4 Best Practices for Your Optimal Digital Onboarding

Let's now turn our attention to the core question: How do we effectively manage our 100% remote onboarding? We are delighted to share with you our four time-tested practices, designed to offer any company a robust framework for developing an optimal onboarding process. This approach is specifically tailored to minimise the risks mentioned earlier and to ease the integration of new team members.

1. Continuous Contact: We rely on seamless communication from the start. Right after the interview, we stay in touch with the new team member. We gradually share information about the company and its culture, allowing the new member to familiarise themselves with their new work environment before their official start. This ongoing communication helps to reduce uncertainties and enable a smooth transition to a new role.
2. Preventing Overwhelm: Recognising that an overloaded first day can pose challenges to starting a new role, we have designed our welcome process in several stages. On the initial day, we furnish only the most crucial information necessary for the first tasks. This encompasses an understanding of the company's organisational structure, essential tools, contacts for diverse queries through personal discussions, and an orientation to the project, team, and areas of responsibility. By adopting a step-by-step approach, we prevent overwhelm and assist the new team member in swiftly acclimatising.
3. Bridge the Gap: To bridge the gap of physical distance and foster a sense of connection, numerous contacts maintain close communication with the new team members throughout their first week. Our goal is to make sure that the newcomer feels supported and never isolated. Beyond project-related communication channels, our team members also enjoy access to off-topic channels where they can share personal interests, and experiences, or simply exchange humorous memes.
4. Mutual Feedback: We place great importance on the feedback from our team members. Through regular discussions, we provide an avenue for new team members to share their insights with us. This approach to open dialogue helps us to better understand each individual, tailoring the onboarding process to their needs. The mode of communication, be it personal conversations or written exchanges, is secondary to our primary aim: to swiftly address any challenges and ensure that every newcomer feels supported and acknowledged.

Adopting these best practices guarantees a smooth onboarding journey for our remote employees, making them feel valued and an integral part of the team from the outset. By establishing a well-organised and effective onboarding procedure, businesses can ensure the rapid integration and comfort of new hires, leading to their prompt contribution and productivity. This is a vital component in the success of any company.

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Sources:

• Brenner, D. (2020). Onboarding beginnt vor dem ersten Arbeitstag. In: Onboarding. essentials. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-30674-8_3
• Gallup. (2022, October 26). A $7 trillion workplace problem: Productivity loss. Gallup Workplace. https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx
• Gallup. (2017, October 13). Dismal employee engagement is a sign of global mismanagement. Gallup Workplace. https://www.gallup.com/workplace/231668/dismal-employee-engagement-sign-global-mismanagement.aspx
• Glean. (n.d.). Research brief: A workforce that thrives. Glean. https://get.glean.com/rs/626-JWX-444/images/Glean_research_a_workforce_that_thrives.pdf
• The Wynhurst Group. (2014). Help new hires succeed: Beat the statistics. The Wynhurst Group. http://thewynhurstgroup.com/wp-content/uploads/2014/07/Help-New-Hires-Succeed.pdf
• Murphy, L. (2023, July). A guide to onboarding new hires for first-time managers. Harvard Business Review. https://hbr.org/2023/07/a-guide-to-onboarding-new-hires-for-first-time-managers
• Glassdoor. (n.d.). The true cost of a bad hire. Glassdoor. https://b2b-assets.glassdoor.com/the-true-cost-of-a-bad-hire.pdf